Nguyen's Income Is $40,000

question 15

Multiple Choice

Nguyen's income is $40,000. If Nguyen spends $36,000 on consumption, $4,000 on a newly-constructed vacation home, then Nguyen

• A)Is not saving.
• B)Has saving equal to $4,000.
• C)Has surplus funds of $4,000.
• D)Has saving of an indeterminate amount.

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Definitions:

Feedback Loop

A feedback loop is a process in which the outcomes of a system are circled back and used as inputs for future actions, allowing for continual adjustment and improvement.

External Environment

The conditions, entities, events, and factors surrounding an organization that influence its activities and choices, such as economic conditions, competitors, and regulations.

Resource Inputs

The materials, labor, and capital that are invested into a system or process to produce goods or services.

Finished Goods

Products that have completed the manufacturing process and are ready for sale or distribution to customers.